Agency by Estoppel

Definition - What does Agency by Estoppel mean?

Agency by estoppel is a legal term that refers to someone giving the impression that they are an agent acting on behalf of an individual or a company. This agency is not officially appointed and the agent by estoppel is not authorized to represent the person or company they ostensibly work for.

Insuranceopedia explains Agency by Estoppel

Agency by estoppel is still considered a legally binding agency relationship. This means that an individual or company cannot unofficially give someone the appearance of working on their behalf but then distance themselves from the consequences of that ostensible agent's actions. In other words, if a company supplies someone with office stationery, branded business cards, and an office in their building – in other words, giving them the appearance of being an official representative of the company – then they are liable for that person's actions on behalf of the company, including any loans or insurance policies they have issued.